Saugerties board flags $5.9 million budget gap; votes deferred as administration outlines cuts and survey

Saugerties Central School District officials told the school board that the district is facing an operating shortfall of roughly $5.9 million as they refine the 2026–27 budget.

In a detailed presentation, Business Officer Mr. Steiger and Superintendent Dr. Rohrbach said revenues are projected to rise about 2.8 percent while expenditures are growing faster, driven largely by special education placements and services, transportation for displaced (McKinney‑Vento) students, higher insurance costs and increased payments for Ulster BOCES services. The administration presented a preliminary tax‑levy increase calculation of 3.15 percent — about $1.5 million — constrained by the statutory tax‑cap calculation that uses the lower of 2 percent or inflation for levy growth.

Steiger said the district serves 2,463 students, including 613 students with disabilities, 69 English‑language learners and 1,027 students eligible for free or reduced‑price meals. Those programmatic needs, he said, raise per‑student costs and complicate a direct relationship between declining enrollment and lower spending.

Administrators listed major budget drivers: rising BOCES service and tuition costs (including out‑of‑district special‑education placements and assistive‑technology evaluations), transportation increases (Steiger cited a projected $885,000 year‑over‑year rise driven in part by long‑distance routes for displaced students), and a notable uptick in property and liability insurance costs and self‑insured retention. Medicaid reimbursement efforts are ongoing but rely on timely parental consent, the administration said.

To narrow the gap, the administration described a two‑track approach: (1) pursue revenue options and restricted reserve uses where allowable, and (2) reduce or reconfigure expenditures. Specific options under review included optimizing bus routes based on a parent survey to reduce redundant runs, restoring or trimming BOCES services that were cut last year, shifting some technology purchases to the Smart Schools Bond Act, limiting or modifying club stipends, field trips and modified sports, and examining security staffing (reducing contracted armed guards and expanding SRO/monitor deployment) to realize savings. The district also emphasized expected savings from upcoming staff retirements and related salary 'breakage' (replacing high‑step retirees with lower‑step hires), and is reviewing the timing and legal constraints for using capital and pension reserves.

Board members pressed for more detail on specific line items (how much of the BOCES increase reflects restored services versus rate increases, and the place of transportation in state aid calculations). Steiger said the district reduced the projected gap from roughly $6.9 million to about $5.9 million after line‑by‑line reviews and updated health‑insurance projections.

Administrators repeatedly asked residents to complete a transportation survey sent through Infinite Campus; the survey is intended to guide route consolidation, which administration says could deliver meaningful savings but would also reduce related future state aid if transportation spending drops.

The board did not take final votes on budget parameters at the meeting. Administrators urged public engagement ahead of the upcoming budget vote timeline and reminded residents that board petitions and candidate filings are due in mid‑April and the public budget vote is scheduled for May 19.

The presentation and question period closed with the administration promising more granular numbers in follow‑up materials and further discussions in the coming week.